For the financial year 2021-22, you have
to file the Income Tax Return by July 31st of this year. Before
filing the RTI you must have complete detail about your income in the previous
year from various sources. The government, as you know, provides you rebate in
various forms on your taxable income, whose knowledge for you is very much
essential in order to make the best use of it.
One such exemption is provided for
your children’s education or on the interest that is paid on the loan taken for
that purpose, detailed insights on this.
The tax exemption of 1.5 Lakh on the expenses
made for education:
You can seek a rebate of over 1.5 Lakh
under section 80C on expenses of education for up to two children. Whereas, if
you have two children you can seek the rebate under the same provision for any two.
You can claim for the expenses made on full-time education, apart from this you
can only ask for a rebate on the tuition fees.
Benefits of tax exemption on the interest paid
on Education loan:
Under the provisions of Section 80E of
the Income Tax Act, anyone can claim a tax rebate on the interests paid for the
education loan. However, this exemption is only applicable if the loan is
issued in the name of a woman, her husband, or their children for higher
education (India or Abroad), by any bank or financial institution. The claim
for exemption can be started from the year when the interests are being paid
and can be claimed for the next seven years or full repayment of the loan
whichever is earlier.
No limits on maximum tax exemption:
If you have two children and have
taken a loan for both of their education then under section 80E, you can claim
the exemption on the payment of interest on both loans. For this, there is no maximum
limit under the section’s provision.
The exemption is applicable only under the old
tax slab:
There exist two options for filing the
ITR. The government released the second one on April, 1st 2020. In the
new slab, the tax rate over income above 5 Lakh annually was kept low, but the
deduction was taken away. If you take up the old format, you will be eligible
to claim the deduction.
Follow these steps to file your Income Tax
Return for the previous year:
- Visit the website of the Income Tax Department, incometax.gov.in
- You will have to make an account on the site to proceed further, so if you don’t have one first make it with simple quick processes. After the generation of the account, you will now have a User ID and password.
- Fill in your User ID and password in the designated section.
- After logging in a fresh page will appear showing e-file, click on it and select the Income Tax return option.
- Click on the option showing Assessment Year 2021-22 and then continue.
- After this, you will get an option of Online and Offline, Click on the online and select the personal option.
- Click on the ITR-1 or ITR-4 option and proceed after clicking on continue.’
- If you are salaried personal then proceed with the ITR-1 option. After that, the form will be downloaded into your system. After that go into the ‘Filling Type’ section and click on 139(1).
- The selected form will appear on your screen, fill in all the details asked. Carefully fill in your bank details.
- If you would have selected the Offline option, then after registering all the mandatory fields you will find the option of ‘Attach File’, where you need to attach your form.
- After the file is attached the site will automatically attach the file to validate, once it is done, click on ‘Proceed to Verification’.
With this within a few minutes, you
can easily file your ITR. To verify your return you can choose the option
E-Verification.